I was thinking more along the lines of parameters for photoshop. Like auto setting the height and width of the canvas by passing the numbers to link. Thanks for your help, Ill keep toying around and see what is possible.

2. Can anything I do in Photoshop send anything back to the HTML page?

3. Does any of this work in InDesign?

John Nack implied this was the case with his blog comment "Just like FP, WebKit will be able to send commands to the host app's scripting system." I would like to use the webkit form of the panel to control InDesign/Photoshop as directly as we can do with Flash-based CS Extensions built with the CS Extension Builder (i.e., imagine if the AJAX form of AIR could be used for extensions instead of just the Flash form of AIR). A single script is a step forward and has some viable use, but it would be most cool to be able to use HTML-based panels to directly work with the host application. It would appear the underpinnings may be there for this, but hard to find out for sure if this is the case.